Lindt & Sprüngli achieves dynamic sales and profit growth

The Group is therefore on track to achieve its strategic target of organic sales growth of around +5% for the full financial year. The company announced an improvement in operating profit (EBIT) to CHF 117.1 m as of June 30, 2018, an increase of +11.5%. Net profit improved by 12.7% year-on-year to CHF 86.0 m.

Market share gains were particularly impressive in the large markets in Europe, considering the highly saturated chocolate markets and an exceptionally challenging trading environment. A vibrant seasonal business, the launch of product innovations and the good performance of own chocolate boutiques and cafés are building the base for this success.

The “Europe” segment generated sales of CHF 855.6 m, which represents an organic growth of +5.0%. Germany and Italy reported sound results, while sales growth in the UK, Austria, Spain, and the “Nordics” was well above average. Growth rates even hit the high double-digits in the Eastern European markets of Russia, the Czech Republic, Slovakia, and Hungary. In 2018, Lindt & Sprüngli is investing over CHF 30 m in modernizing and expanding the Lindt Cocoa Center in Olten, Switzerland, and the logistic warehouse at the Aachen plant in Germany.

Despite a challenging trading environment, the “NAFTA” segment was able to report solid organic growth of +4.0% in the first half of 2018, with total sales amounting to CHF 564.1 m. A highlight in this segment was the excellent results achieved by Lindt in Canada and Lindt USA. Russell Stover managed to stabilize its sales, with only a modest dip in the first half of 2018. To support the expansion plan in North America, around CHF 200 m will be invested in the construction of new high-tech production lines for cocoa and chocolate mass within the next three to four years in the US-plant in Stratham.

The “Rest of the World” segment once again reported impressive organic sales growth of +8.4%, amounting to CHF 248.5 m. Sales in China doubled, but are still at a modest level. Growth rates in Brazil, Japan, and South Africa were once again in the high double-digits. The Global Retail business with own chocolate boutiques and cafés, again achieved impressive growth. A total of 40 to 50 new store openings worldwide are planned. 

The continuing successful expansion of the Lindt & Sprüngli Farming Program is showing a positive impact: in 2017 over 60,000 farmers already benefited from Lindt & Sprüngli’s own sustainable sourcing model, and 79% of the sourced cocoa beans were traceable and externally verified. After initial success in Ghana, Ecuador, Madagascar, and Papua New Guinea, the Program was expanded to the Dominican Republic in the first half of 2018. As a result, all the countries Lindt & Sprüngli sources cocoa beans from are covered by the Program. Lindt & Sprüngli is therefore well on track to achieve its declared goal of having a 100% traceable and verified supply chain for cocoa beans by 2020. “We are well on track to achieve our goal of having a 100% verified supply chain for cocoa beans by 2020,” explained Dieter Weisskopf, CEO of Lindt & Sprüngli.